Crypto start-up Good Money backed by loss-ridden Galaxy Digital
Good Money, the digital banking platform using cryptocurrency for a positive social impact has received a $30 million Series A funding to continue developing its application, according to a press release published on December 10.
The funding is spearheaded by cryptocurrency proponent, Mike Novogratz’s Galaxy Digital through its Galaxy EOS VC Fund. Other participants in this Series A funding include Boost VC, Ken Howery, Blockchange Ventures, Cross Culture Ventures, Troy Carter, Breyer Capital, Blocktower Capital among others.
The “value-based banking” application gives users an ownership stake in the platform when they open their account. In a bid to democratize ownership and the create wealth, ownership is increased when users install the application, set up a direct deposit or refer friends. Good Money also offers FDIC insured savings accounts that will generate a 2 percent yield, no-cost ATMs, no overdraft fees and low customer loan rates.
Social impact is also a top priority, with 50 percent of the profits put into impact projects focused on social and economic inequality, environmental upliftment and renewable energy. Additionally, 50 percent of the equity is also set aside for philanthropy and impact.
Gunnar Lovelace, the founder of Good Money, a proponent of social-change driven business, said, “We founded Good Money to help consumers take their money out of a system that’s both destroying the planet and extracting wealth from the most vulnerable and put it into a new system focused solely on benefiting people and planet.”
“As we scale Good Money over the next 10 years, we will empower consumers to realize they should own the businesses they buy from as an evolutionary step in improving capitalism by leveling the economic playing field,” said Lovelace on the future prospects of Good Money.
In recent news, Mike Novogratz’s Galaxy Digital LP, the crypto-centric merchant bank posted a $41 million loss in the third quarter of 2018. As revealed in their financials released in late-November, the merchant bank’s loss from the beginning of the year to September 2018 was $136 million. The magnitude of this figure is due to the unrealized loss on virtual currency holdings and weak trading volumes of trades on Bitcoin, Ethereum and XRP.
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